Berlin a magnet for musical adventurers

BERLIN (Billboard) - When

David Bowie moved to the divided city of Berlin in 1976, he joined 2 million inhabitants of what was effectively an island surrounded by the communist German Democratic Republic. This particular contrast between east and west inspired his "Berlin trilogy" of albums, "Low," "Heroes" and "Lodger," although only "Heroes" was recorded in the city.

That perennial appeal to artists -- the likes of

Iggy Pop and

Nick Cave have also lived in the city -- strengthened on November 9, 1989, with the fall of the Berlin Wall. This was followed by the unification of Germany in October 1990.

With the opening of the borders, Berlin was inundated with thousands of creative people. Today, the Germany capital has more than 3.4 million citizens and has become a multicultural melting pot and a magnet for the music industry. The city is home to hundreds of labels specializing in dance, electronic and hip-hop, and there is now also a burgeoning rock and alternative rock scene, while the major labels have released albums by more than 40 Berlin acts in the past 10 years.

"Berlin's cultural scene is so radical and swift-paced that it is breathtaking," says Hartwig Masuch, managing director of Berlin-based BMG Music Publishing.

Berlin has evolved into a mecca for many musicians from all around the world. A substantial number of DJs and bands move to Berlin to be inspired by the city's cultural diversity.

Berlin is also one of Europe's dance centers, with a multifaceted club culture focusing on techno, electro and hip-hop. Olaf Kretschmar, manager of Oxymoron, one of 250 clubs in the city, says, "The music city reinvents itself each day," he says. "The clubs are homes away from home for an urban scene aged between 18 and 40."

The concert scene in Berlin is one of the most diverse in Europe, notes Peter Schwenkow, Berlin-based president/CEO of top German promoter DEAG AG, which claims to account for 30% of the revenue generated by live music in Berlin.

He says that up to 2,000 pop concerts are offered each year and, while ticket prices are 10% below nationwide levels, the city remains a key stop for top international stars.

Berlin has more than 250 venues, from small, 300-capacity clubs like Knaack-Club and Volksbuhne to arenas like Wuhlheide (18,000 people) and Waldbuhne (22,000).

Encouraged by such diversity, U.S. company Anschutz Entertainment Group is investing EUR500 million ($659 million) in a new 16,000-seat auditorium to be known as O2-World when it opens in September.

The only major with headquarters in Berlin is Universal Music, the world's biggest record company, which moved from Hamburg in 2002. It lost 40% of its staff in the process, with many unwilling to relocate. As a result, the company was forced to recruit locally and was thus able to capture the special atmosphere of the city. Universal's share of German recorded-music sales rose to 33% in 2006 from 28.4% in 2002.

The company has 24 Berlin acts on its roster, ranging from internationally successful hard rock band Rammstein and hip-hop act Bushido to dance specialist Paul Van Dyk and current Pan-European pop phenomenon Tokio Hotel.

Alongside Universal, Sony BMG and EMI have smaller offices in Berlin. They are joined by such independent labels as !K7, Bungalow, Jack White Productions, Kitty-Yo and Ministry of Sound.

The Berlin music industry generated EUR1.5 billion ($1.98 billion) in revenue in 2006, a 72% increase since 1998, according to local politician Harald Wolf. The industry -- including record companies, publishers, studios, concert promoters and retailers -- employs more than 6,200 people.

"The city of Berlin is full of energy," says George Glueck, a publisher/producer with his own Berlin label X-Cell. "It's a magnet for the most unique individuals with an urge to find a place to express their creativity in an atmosphere of tolerance. There is no alternative for me (to Berlin), as this is where I find inspiration."

Reuters/Billboard